Tax exemption to be hiked to Rs 3 lakhs soon?

Tax exemption to be hiked to Rs 3 lakhs soon?

Ahead of the Budget, a Parliamentary panel that scrutinised the Direct Taxes Code Bill has suggested that Income Tax exemption limit be raised to Rs 300,000 per annum, and the investment limit for tax savings schemes be hiked to Rs 320,000.

Tax exemption to be hiked to Rs 3 lakhs soon?

In its report, which was submitted to the Lok Sabha Speaker Meira Kumar on Friday, the Standing Committee on Finance suggested that the wealth tax limit be pegged at Rs 5 crore (Rs 50 million), while the Securities Transaction Tax be abolished.

Tax exemption to be hiked to Rs 3 lakhs soon?

Besides hiking the income tax exemption to Rs 300,000 from Rs 1,80,000 at present, the Standing Committee also suggested that 10 per tax be levied on taxable income between Rs 300,000-10 lakhs (Rs 1 million), 20 per cent between 10-20 lakhs (Rs 1-2 million) and 30 per cent over Rs 20 lakhs.

At present, 10 per cent tax levied on income between Rs 1,80,000-500,000, 20 per cent on income between Rs 500,000-800,000 and 30 per cent above Rs 800,000.

Tax exemption to be hiked to Rs 3 lakhs soon?

With regard to tax savings scheme, the panel has proposed to raise the total tax exemptions limit under various scheme to Rs 320,000 from existing Rs 180,000 and Rs 200,000 suggested by the DTC.

With regard to the wealth tax, the committee suggested that it should be levied only if the value of specified asset exceeds Rs 5 crore (Rs 50 million) as against Rs 30 lakhs (Rs 3 million) currently and Rs 1 crore (Rs 10 million) suggested by the proposed DTC Bill.

Tax exemption to be hiked to Rs 3 lakhs soon?

The government, pending approval of the DTC Bill by Parliament, is likely to introduce some measures concerning taxes in the forthcoming Budget itself to be presented by Finance Minister Pranab Mukherjee in the Lok Sabha on March 16.

The Budget Session of Parliament will begin on March 12 with President Pratibha Patil addressing the joint sitting of Members of the Lok Sabha and the Rajya Sabha.